EX-12 6 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED) Computation of Ratio of Earnings to Fixed Charges (unaudited)

EXHIBIT 12

 

OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

 

(In millions)    Years Ended December 31,
  
     2004
     2003
     2002
     2001
     2000
  

Earnings:

                                         

Income (loss) before taxes and cumulative effect of accounting change

    $ 86     $ 5     $ (27 )   $ (13 )   $ 131  

Add (deduct):

                                         

Equity in income of non-consolidated affiliates

      (10 )     (8 )     —         —         (2 )

Dividends received from non-consolidated affiliates

      —         —         —         —         1  

Fixed charges as described below

      30       31       36       29       27  
    
 
 
 
 

Total

    $ 106     $ 28     $ 9     $ 16     $ 157  
    
 
 
 
 

Fixed charges:

                                         

Interest expensed and capitalized

    $ 20     $ 20     $ 26     $ 18     $ 16  

Estimated interest factor in rent expense (1)

      10       11       10       11       11  
    
 
 
 
 

Total

    $ 30     $ 31     $ 36     $ 29     $ 27  
    
 
 
 
 

Ratio of earnings to fixed charges (2)

      3.6       —         —         —         5.8  
    
 
 
 
 

 

(1) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.
(2) Income (loss) before taxes and cumulative effect of accounting change was insufficient to cover fixed charges by approximately $3 million, $27 million and $13 million for the years ended December 31, 2003, 2002 and 2001, respectively.